With the Dow exploding 0.07% today, it doesn’t exactly make for electrifying market discussion, so I thought I’d share a few thoughts about some select ETFs. These happened to load in reverse alphabetical order, so here we go……..
Consumer Staples (NYSE:XLP) has been a pretty big point of frustration for me. Over the past couple of weeks, it’s been terribly strong, managing to reach its intermediate-term descending trendline. Frankly it needs to weaken, and fast, in order to maintain its bearish configuration.
The Industrial Select (NYSE:XLI) sector is behaving itself much better. Even on a day like this, it continues to slip, and it’s got a spiffy little topping formation that’s complete.
The Financials (NYSE:XLF) refuse to weaken, but its bull market is so terribly long in the tooth, I think its downturn is nearly inevitable. The powerful analog remains intact.
Semiconductors (NYSE:SMH) continue to be a monster, and I’m not going anywhere near them.
Real Estate (NYSE:IYR) remains surprisingly strong, and it’s pretty clear this bullish breakout has legs.
The Russell 2000 (NYSE:IWM) is breaking down quite nicely, in sharp contrast to more popular indexes.
The mass media is finally starting to focus the same attention on High Yield Bonds (NYSE:HYG) that I’ve been giving it for months now. There is some serious weakening happening here.
Brazil (NYSE:EWZ) had a bit of a bounce on Monday, but I think the damage is gone to that long-term trendline. This market is very vulnerable to continued weakness.
Lastly, the Ultra Dow (NYSE:DDM) – – which is the “double bullish” fund based on the Dow 30 – – quite plainly shows that prices remain much closer to long-term resistance (red line) than they do support (the green line, which is miles away).
I’ll see you Tuesday morning.